The average car audio retailer, or at least the average among the hundreds studied by Avidworx, makes $500,000 a year in gross revenues and gets 15 visitors per day.
Store traffic is down from two years ago, when it was 30 visits a day.
The figures were part of a Pre-KnowledgeFest webinar presented by Marcel Newell of Avidworx and sponsored by MERA (Mobile Electronics Retailers Association) on “How to Work on Your Business, and Less in it.”
Here are some other statistics on car audio specialists:
Average sale total price: $170
Average margin: 32 percent
Average closing rate: 50 percent; some good retailers get 60 to 70 percent
Average start up investment: $10,000 Half of that goes to installation tools so there’s little left over for marketing and merchandising.
Newell said the number one goal of a retailer is to create trust with the customer. You have 3 seconds when a customer walks in the store to create a first impression of trust. So if the store isn’t organized and hasn’t been updated in 20 years, you will inhibit trust from the outset.
During KnowledgeFest from August 17- 20 in Dallas this year, Newell will hold an evening seminar where dealers can bring photos of their stores and financial statements and he will help them analyze their businesses.
Newell showed photos and business statistics from two other retailers in different fields to demonstrate a showroom that inspired trust and ran on a sound business strategy.
He teaches retailers to spend less time working on day to day business and to start working ON the business, putting systems in place so they can leave their stores for 3 months if need be, while the store would run itself and the employees could continue to add value to the store.
Avidworx, which makes retail demo displays for car audio retailers, will also present seminars at KnowledgeFest on Merchandising and store design, Business planning, and Human resource management.
To register for KnowledgeFest, the annual car audio expo for dealer education and training, visit www.knowledgefest.org.